Czech c. bank launches interventions on FX markets
The Board of the Czech National Bank has decided to launch interventions on foreign exchange markets due to the significant depreciation of the koruna in recent days, reported the Czech Radio.
The move is to offset a longer-term depreciation of the koruna at a time of high inflation. Sales from the proceeds from foreign exchange (FX) reserves will be suspended for the duration of the interventions.
The Czech koruna weakened against both major world currencies following the appointment of Aleš Michl to the post of governor.
Michl was appointed as governor of the central bank by Czech President Miloš Zeman on Wednesday. He will replace Jiří Rusnok, whose second spell as central bank chief is coming to close.
Michl opposes the current interest rate hike cycle.
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